Key points:
- Sacramento region builds 12,500 homes in 2024, a 60% increase from five years ago.
- Housing production milestone surpasses SACOG’s annual targets in the 2025 Blueprint.
- Sacramento region needs 278,000 new housing units by 2050 to meet goals.
SACRAMENTO — The Sacramento Area Council of Governments (SACOG) announced Monday that the region built 12,500 homes in 2024, marking the highest housing production year since 2005 and a 60 percent increase compared to just five years ago.
The figures surpass the current annual targets established in SACOG’s draft long-range plan, known as the 2025 Blueprint, which outlines housing, transportation, and environmental goals across the six-county region. SACOG officials said the milestone reflects years of planning and collaboration between local jurisdictions and demonstrates that the region is capable of scaling up housing construction in response to California’s ongoing housing shortage.
“We’re seeing the results of years of planning, collaboration, and strategic investment,” said Darren Suen, chair of the SACOG Board of Directors and a councilmember for the City of Elk Grove. “We know there are still challenges ahead, but it’s great to take a moment to recognize the hard work of our local leaders who are showing the region is primed for more housing. Such collaboration and leadership will be critical to maintain momentum, especially in the face of growing economic headwinds and shifting market conditions”.
The 2024 housing data underscores the progress made throughout the Sacramento area. More than 4,000 attached housing units, including apartments, duplexes and townhomes, were completed—the most since SACOG began tracking the data in 2001. Nearly 800 accessory dwelling units (ADUs) were also built, representing the highest total ever recorded.
The surge represents a shift for the Sacramento region, which, like much of California, has faced persistent challenges in meeting housing needs. Rising costs, limited supply, and regulatory barriers have long strained the market. SACOG highlighted that policies such as removing parking mandates, streamlining approvals, and creating more flexible zoning standards have been key drivers behind the recent growth. The expansion of ADU programs has also allowed homeowners to contribute to housing supply, particularly for lower-cost rental options.
Despite the gains, SACOG emphasized that the road ahead remains steep. To meet housing goals forecast in the 2025 Blueprint, the six-county region will need to add 278,000 new housing units by 2050. That projection reflects an anticipated population increase of 580,000 residents over the next quarter century.
While the latest numbers represent meaningful progress, SACOG noted that broader forces—such as market cycles, population shifts, and interest rate fluctuations—will continue to shape the pace of new construction. Officials cautioned that housing production can swing dramatically depending on economic conditions, making long-term consistency a key challenge.
The Sacramento region has historically experienced volatile construction cycles, tied in part to swings in California’s housing market as a whole. The last time the region saw similar levels of housing production was in 2005, just before the housing market collapse and subsequent recession sharply slowed construction. The rebound in 2024, officials said, shows what is possible when policies and investments align.
SACOG has played a central role in coordinating housing strategies across its 28 member jurisdictions, which include cities and counties throughout the Sacramento area. As the sole public agency representing every city and county in the region, SACOG is tasked with addressing challenges that are too large for individual jurisdictions to solve on their own.
The agency focuses on what it describes as three strategic goals—equity, economy, and environment—while working with local governments to implement housing, transportation, and sustainability policies. In its housing production indicators, SACOG details how cities and counties are progressing toward meeting state housing mandates and regional growth targets.
Suen said that local collaboration has been essential. “Such collaboration and leadership will be critical to maintain momentum,” he said, pointing to economic uncertainty and shifting market dynamics as factors that could slow progress if jurisdictions lose focus.
The report highlighted several policy reforms that have helped spur construction. Cities and counties across the region have reduced or eliminated parking mandates for new housing projects, a move intended to cut costs and remove barriers to development. Local governments have also streamlined approval processes, making it faster and easier for projects to break ground.
Flexible zoning standards have also expanded the potential for higher-density development in areas previously zoned only for single-family homes. In addition, the widespread adoption of ADU ordinances has opened the door for thousands of smaller units to be built on existing lots.
State policy has also played a role. Over the past decade, California has passed laws to curb local restrictions on housing, strengthen requirements for cities to plan for growth, and increase accountability for jurisdictions that fall short of state housing targets. In the Sacramento region, these changes appear to have coincided with a marked increase in production.
Looking ahead, SACOG’s 2025 Blueprint sets ambitious targets that require steady annual production in order to avoid shortfalls. While 2024 represented a major step forward, officials cautioned that one strong year is not enough to guarantee the region will remain on track.
The region’s ability to meet housing goals will depend not only on local policy but also on how broader economic trends unfold. Inflation, construction costs, labor shortages, and interest rates all pose potential obstacles. Population growth itself may also fluctuate depending on migration patterns, job opportunities, and the cost of living.
Still, SACOG leaders argued that the recent data shows that regional cooperation can deliver results. By aligning local policies with regional and state objectives, the Sacramento area demonstrated capacity for housing growth on a scale not seen in nearly two decades.
For Sacramento, 2024 stands out as a banner year in housing production—a reversal from earlier periods of stagnation. The completion of 12,500 units represents a milestone that SACOG officials say should be recognized, even as the challenges of affordability and long-term planning remain front and center.
The gains also highlight the balance between celebrating progress and acknowledging the work still to be done. While more homes were built in 2024 than in any year since 2005, the need for affordable housing, equitable distribution of growth, and resilience against economic downturns remain pressing concerns.
SACOG concluded its announcement by reiterating the importance of ongoing collaboration among local governments, developers, and community leaders. Officials framed the results as proof that the region can accelerate housing production while working toward broader goals of equity, sustainability, and economic vitality.
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When has Sacramento ever NOT stopped growing/sprawling outward? When has any organization or agency stopped them from doing so?
But also more concerning – you’re holding this up as “good news”? Or something “unusual”?
Since a lot of newcomers to the Sacramento region came from the Bay Area, what we’re continuing to see is the OPPOSITE of the state’s (stated) goals regarding density.
You could probably easily fit about 5 additional cities the size of Davis inside of Sacramento’s city limits, and yet they continue to sprawl outward for the most part, instead.
By the way, what’s the average cost of those new houses? I’m going to guess that it’s more than $500K, despite being in that sprawling area. (Actually, I just realized that you can see a lot of the new housing developments via a link below – including advertised price range. (And that’s probably without the “extras” – like door handles.) In any case, I see very few advertised below $500K.
https://www.newhomesource.com/communities/ca/sacramento-area/sacramento?refer=msm303&msclkid=ebefb0b0896f13aa6b41d81d59c21913&utm_medium=cpc&utm_source=bing&utm_campaign=paid
“Sacramento Region Sees Highest Housing Production in Two Decades, Exceeding Near-Term Target”
Problem solved. No more housing crisis.
Not yet
LOL, never will be at least in the eyes of some…